The European currency Euro logo stands in front of the European Central Bank in Frankfurt, Germany, on August 4, 2011. (Getty Images)

(Newser)
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Europe's central banking system has agreed to buy huge quantities of Spanish and Italian government bonds in an attempt to stem the debt crisis overwhelming the eurozone, a source told Reuters after an ECB conference call today. “The Euro system will intervene very significantly,” the source said. He didn’t say how much the bank would pour into the spend, but it’s expected to dwarf the $115 billion spent on Greek, Irish and Portuguese bonds. One economist told the Wall Street Journal that "respectable arguments can be made for ($331 billion to $576 billion) of purchases."

Debate over the matter was intense, with one French official calling the ECB out: "Guardian of the euro, she must intervene massively on the debt market to avoid the implosion of the zone." Opponents, meanwhile, questioned whether intervention even works: Despite the aforementioned bond purchases in Greece, Ireland, and Portugal, all three retain junk-bond status, with Greece still teetering on collapse.

Anyone with any understanding of Eurozone accounting and the condition of Europe's banks knows that Europe is the U.S. x 3 with their debt problems. I don't know what will follow their great socialist experiment, but Europe's going down. If Bernanke bails out the European banks again as he did in 2008/2009, then we will go down with them. Right now, the Fed is probably the greatest enemy of the U.S. out of shear stupidity.

silverfox

Aug 7, 2011 10:32 PM CDT

The UK is heading for the biggest bankrupcy in history as our prime-minister and his ilk will do anything will do anything to prop up this corrupt regime.You see they want this EU gravy train to keep on running, so when they lose thier jobs as MP's they can get a job straight away on huge wages and a golden hello' and a huge pension from GB enterprise.And when they retire from the EU they get it all over again. Believe me the MAFIA have nothing on this bunch of criminals.